Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the CRA.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle de l'ARC.
Please note that the following document, although believed to be correct at the time of issue, may not represent the current position of the Department.
Prenez note que ce document, bien qu'exact au moment émis, peut ne pas représenter la position actuelle du ministère.
Principal Issues:
Is a particular educational program a "qualifying educational program" for the purposes of the lifelong learning plan?
Position:
A determination could not be made.
Reasons:
Additional information is required.
XXXXXXXXXX 2001-009766
W. C. Harding
August 31, 2001
Dear XXXXXXXXXX:
Re: Lifelong Learning Plan, Qualifying Educational Programs
This is in reply to your correspondence of August 20, 2001, in which you asked if the educational program you will be taking this September is a qualifying educational program for the purposes of the Lifelong Learning Plan.
Determinations of the eligibility of educational programs under the Lifelong Learning Plan are generally made through the local Tax Services Offices that serves the educational institution. Alternatively, institutions may request a determination of the question by writing to one of the addresses indicated in paragraph 9 of the enclosed Interpretation Bulletin IT-515R2 Educational Tax Credit. In either case, a determination of whether a specific program is a qualifying educational program for purposes of the Lifelong Learning Plan is a question of fact, which cannot be made solely on the basis of the information provided in your letter and would require as a minimum, the submission of additional information addressing the concerns outlined below.
You will find the Agency's general views regarding the Lifelong Learning Plan in the Guide entitled Lifelong Learning Plan (LLP) (Form RC4112). A copy of the Guide is available from your local tax services office or on the Internet at -
http://www.ccra-adrc.gc.ca/E/pub/tg/rc4112eq/.
The Lifelong Learning Plan lets individuals withdraw up to $10,000 a year (to a $20,000 maximum) from their registered retirement savings plans to finance full-time training or education for the individuals or their spouses. In order to qualify, an individual that is attending school has to be enrolled as a full-time student in a qualifying educational program or has to have received written notification that he or she is absolutely or contingently entitled to enrol before March of the following year, as a full-time student in a qualifying educational program. The requirements that the student be a "full-time student" and that the student be enrolled in a "qualifying educational program" must be satisfied. However, there are special rules that permit students with disabilities to participate in a plan if they are enrolled as part-time students. Details of these special rules can be found in the above-noted Guide.
A "qualifying educational program" is defined in subsection 146.02(1) of the Income Tax Act (the "Act"). In general terms, it is an educational program at a designated educational institution for a period of not less than three consecutive months which provides that a student must spend not less than ten hours per week on courses or work in the program that is a program at a post-secondary school level. The educational institution giving a course should know whether a course would satisfy this requirement.
An educational institution also normally determines who is a full-time or part-time student under its rules. In this respect, it is important to note that the school could determine that a student is enrolled as a part-time student even if the student is enrolled in a program that requires spending 10 hours or more per week on courses or course work.
A designated educational institution is a university, college, or other educational institution that qualifies for purposes of the tuition or education amount that you can claim on your income tax return. However, because there are a number of criteria that must be considered, it may not be readily apparent that a particular institution qualifies. Accordingly, each local tax services office maintains a list of institutions where it has been determined that an institution qualifies. This list is updated on a regular basis but is not conclusive and there may be institutions that have not been considered.
In your letter, you indicated that you are enrolled on a full-time status in a program leading to a Master of Science Degree in Martial and Family Therapy. You indicated that the program is offered by the XXXXXXXXXX.
XXXXXXXXXX is included on the list of designated Universities located in the United States. Accordingly, programs provided by the University could be "qualifying educational programs" for students enrolled at that University, assuming all of the other conditions noted above are satisfied. Similarly, the Canadian University College is included on the list of designated Universities located in Canada so programs provided by that University could also be "qualifying educational programs" for students enrolled there, assuming again that all of the other conditions noted above are satisfied. However, it is not clear that a program provided by the American University will qualify where tuition fees are paid to the affiliated Canadian University. Furthermore, it is not clear that you are or will be enrolled in the designated educational institution that is providing the educational program you plan to take and these concerns will have to be addressed before a determination can be made.
If either you or one of the institutions decides to pursue this matter, we suggest that a copy of this letter be included with the request.
We trust that these comments will be of assistance to you.
Yours truly,
Roberta Albert, CA
for Director
Financial Industries Division
Income Tax Rulings Directorate
Policy and Legislation Branch
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